ACWI vs XLC: Correlation & Overlap
iShares MSCI ACWI ETF (ACWI) and Communication Services Select Sector SPDR Fund (XLC) show a strong relationship: their 3-year correlation of weekly returns is 0.79. By holdings, the two funds overlap 6.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLC?
Across a 3-year window, the weekly returns of ACWI and XLC correlate at 0.79, strong. Lately the two have drifted apart, with the 1-year correlation at 0.67 versus 0.79 over 3 years. Stretching to 5 years gives 0.81, with an annualized covariance of 172.7 %².
Within ACWI's tracked universe of 119 assets, XLC comes in at #48 by 3-year correlation. The last year tells two different stories: ACWI led by 21.2 percentage points, +22.7% for ACWI against +1.5% for XLC. Across three years, the rolling one-year figure varied moderately, from 0.63 to 0.91.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs XLC: side by side
| ACWI (iShares MSCI ACWI ETF) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +1.5% |
| 5-year return | +69.0% | +37.5% |
| Volatility (ann.) | 13.8% | 16.0% |
| Beta vs S&P 500 | 0.92 | 0.90 |
| Max drawdown (3Y) | -16.5% | -18.0% |
| Dividend yield | 1.44% | 1.32% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $21.7B |
| Sector / category | ETF · Global | Sector ETF |
ACWI, iShares's Global Large-Stock Blend fund, carries $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Portfolio overlap between ACWI and XLC
The two portfolios are largely distinct. Weighing the shared positions, 6.0% of the two funds is identical, spread across 20 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in ACWI | Weight in XLC |
|---|---|---|
| GOOGL | 1.91% | 10.29% |
| GOOG | 1.50% | 8.22% |
| META | 1.21% | 16.73% |
| NFLX | 0.33% | 4.84% |
| VZ | 0.20% | 4.99% |
| DIS | 0.18% | 4.88% |
| T | 0.17% | 5.20% |
| CMCSA | 0.09% | 4.93% |
| TMUS | 0.08% | 4.53% |
| APP | 0.07% | 1.30% |
| WBD | 0.06% | 4.65% |
| TTWO | 0.04% | 4.14% |
| LYV | 0.03% | 4.39% |
| OMC | 0.02% | 4.52% |
| RDDT | 0.02% | 0.32% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), 2330 (1.79%). Only by XLC: TKO (2.13%), TTD (1.00%), NWS (0.77%), PSKY (0.61%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | XLC |
|---|---|---|
| 2022 | -18.4% | -37.6% |
| 2023 | +22.3% | +52.8% |
| 2024 | +17.4% | +34.7% |
| 2025 | +22.4% | +23.1% |
| 2026 | +14.9% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLC good diversifiers for each other?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ACWI and XLC?
As of 2026-08-27, the correlation of weekly returns between ACWI and XLC is 0.79 over 3 years, 0.67 over 1 year and 0.81 over 5 years.
Is XLC a good diversifier for ACWI?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do ACWI and XLC overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 6.0% by weight over 20 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/acwi-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ACWI correlations · XLC correlations
